Noranda Income Fund Unit NNDIF

RE:RE:RE:RE:RE:RE:Smart management.....

[Bigbird999]

From the Q3 financial statement Note 5
Dec 31 2014 total debt was $80 MM Sept 30 2015 it was $126 MM so inventory increase was $46 MM.
and from Note 3
In the same period the raw material (concentrate) inventory increased $23 MM from $60 MM to $84 MM and the finished goods (metal) inventory increased by $39 MM from $36MM to $75 MM.  So total inventory increase is 23 + 39 = $62 MM

So they increased the debt by $46 MM but it is backed up by $62MM of inventory..  I don't see this as a problem. 

The inventory of concentrate is likely to be in the range of 2 -3 months (50 - 60,000 tonnes Zn - about 100,000 tonnes concentrate) in the future.  So expect to see concentrate inventory value in the $60 MM to $100 MM range.  Metal inventory is higher than normal at about 6 weeks of production (35,000 tonnes Zn).  They said this would be reduced to normal levels (probably about 3 weeks) in Q4.

Again, I don't see this an an issue.

BB